The Role of Policy in Supporting Value Chain Development
and Value Chain Partnership
Joyce MulilaMitti
Plant Production and Protection Officers
SFS FAO
Sustaining Legume Value-Chains through Value Added
Processing and Public-Private Partnerships
Joint 2016 PanAfrican Grain Legume and World Cowpea Conference 28 February to 4 March 2016
Presentation Outline
• The Sustainable Food Value Chain (conceptual framework)
• The ten principles of SFVC Development
• Policy implications for Sustainable Legume VC Development
• Conclusions
Background- policy environment
• Most African countries do not
provide
for
adequate
policies/attention for grain legumes;
with most considered as minor
crops.
• Governments need to place more
emphasis on legumes and create
conducive environments by refining
existing policies to promote and
prioritize legume value chains,
which
could
in
turn
provide
economic
and
food
security
benefits.
Sustainable Food Value Chain (concept and
framework)
Definition of SFVC
“the full range of farms and firms and their successive coordinated
value-adding activities that produce particular raw agricultural
materials and transform them into particular food products that are sold
to final consumers and disposed of after use, in a manner that is
profitable throughout, has broad-based benefits for society, and does
not permanently deplete natural resources”
Sustainable Food Value Chain (concept and
framework)
SFVC has 10 principles grouped in three phases:
Phase 1:
measuring performance, assesses a VC in terms of the
economic, social and environmental outcomes it delivers relative to its
potential.
Phase 2:
understanding performance:
Exposes the root causes of underperformance by taking into account
how VC stakeholders and their activities are linked, analysing behaviour
of systems and individual stakeholders and assesses how value
determination in end markets drives the dynamics of the system.
Phase 3:
improving performance, follows a logical sequence of
deriving a core VC development strategy based on the analysis
conducted in phase two and the vision stakeholders have agreed on
and selects upgrading activities and multilateral partnerships that can
realistically achieve the scale of impact envisioned .
Principles for SFVC Development
1.Economically sustainable :
starts with the identification of sizeable opportunities to add to economic value.2. Socially sustainable:
the value added has broad-based benefits for society and results in no socially unacceptable costs.3. Environmentally sustainable:
that there is minimal negative impacts on the non-renewable natural resources on which the agri-food system critically depends.4. Is a dynamic, systems-based process:
Identifying and addressing the root causes of underperformance in the system is important to realise scale.5. Centred on governance:
has strategies understanding behaviour, governance mechanisms, and the factors that influence them.6. Driven by the end market:
recognises that value is ultimately determined in the end market, and therefore any upgrading strategy has to be directly and clearly linked to end-market opportunities for impact.Principles for SFVC Development
7
.Driven by vision and strategy: targeting realistic development goals and as well as particular points and stakeholders in the value chain to be effective.8. Focused on upgrading: successfully translating the vision and strategy into an effective plan that increases competitiveness through realistic and complete set of carefully assessed and often innovative upgrading activities.
9. Is scalable: transformational change, will require that interventions focus on points of leverage or put in motion a demonstration and replication process that is based on realistic assumptions.
10. Is multilateral: successful upgrading requires coordinated and
collaborative efforts by the private sector, as the driver of the process, and the public sector, donors and civil society as its facilitators .
Policy implications
Key intervention points for
grain legumes:
•
Seed systems
•
Input supply
•
Marketing
•
Value addition
•
Advocacy
Key elements for policy interventions to accelerate
value chain development of legumes
Requires good understanding of how local
legume enterprises fit into global economy.
Find out the part of the chain holding up
progress and deserving priority attention.
Identify the relevant stakeholders who can
exert strong influence over the chain.
Identify the enterprises that contribute to the
production and the institutions, needed to
support the enterprises
Policy Intervention-Short Term
Strengthen the institutions and develop the
network to facilitate coordination along value
chains.
Easy access to inputs for production.
Micro-finance/credit linkages for input
procurements.
Enhance private sector participation in seed cycle
to ease the access to improved seeds.
Policy Intervention-Short Term
Other areas of private sector participation to promote value chain approach are collection, grading, storage, processing and packaging.
Advocacy and advertising use of quality seed of
improved varieties to create realization of benefits of their use.
Build the capacities of chain participants providing comprehensive training covering all aspects of
production from Good Agricultural Practices (GAPs) to market.
Promote market information services and linkage to markets (including out-grower or contract farming)]
